NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Texas on behalf of those who acquired DZS Inc. (“DZS” or the “Company”) (NASDAQ: DZSI) securities during the period from March 10, 2023 through May 31, 2023 (the “Class Period”). Investors have until August 14, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
DZS provides access and optical networking infrastructure and cloud software solutions.
On June 1, 2023, the Company announced that it would restate its financial statements from May 9, 2023, to the present, stating the following, in pertinent part, in its current report filed with the SEC on Form 8-K: “The Audit Committee . . . determined that the Company’s previously issued unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2023 contained an accounting error relating to the timing of revenue recognition with respect to two customer projects for the Subject Period.” On this news, the price of DZS shares declined by $2.17 per share, or approximately 36.23%, from $5.99 per share to close at $3.82 on June 1, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) DZS’s financial statements from March 31, 2023 to the present included certain errors; (2) as a result, DZS would need to restate its previously filed quarterly financial statement for the period ending March 31, 2023; and (3) the Company had ongoing undisclosed issues with its internal controls over financial reporting.
If you purchased or otherwise acquired DZS securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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